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Sharia / Insurance / Life Insurance in Islam

Category: Life Insurance in Islam

The main difference between life insurance in Islam and conventional life insurance lies in the basic concepts and ways of managing funds in accordance with Islamic principles. Life insurance in Islam is insurance based on the principle of mutual help and protection among participants through contributions to the “Tabarru Fund”, which is a collection of benevolent funds from the contribution of sharia life insurance participants who agree to help each other if there is a risk between them. These funds are then managed according to sharia principles and under the supervision of the sharia board to deal with certain risks.

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